Audit Appointment for multiple years and CLSS 2010

Statutory Audit 715 views 2 replies

Nilesh K

39 Points Posted on 05 August 2010

XYZ company is having internal dispute between the directors. The court has appointed an adminitrator to manage the affairs of the company during this period. Audit of the company is now pending for over 5 years.

Can Court Administrator make appointment of Statutory Auditor?. What would be the correct procedure for appointment.?

Considering that accounts are pending audit for 5 years, can the appointment be made parallely for all the 5 years?.

Can the accounts of all 5 years be adopted in the same board meeting?

Can the company avail of the Company Law Settlement Scheme 2010 to regularise its pending filings?

What would be the auditor's responsibility in terms of intimating the last appointed auditor and intimating the RoC in the above situation?

Replies (2)

CA Amit Kumar Khaitan

Research Analyst

360 Points Posted on 05 August 2010

I am not very sure, but when the company did not appoint an auditor in 7 days of the last AGM held, the power went to the Central Govt.

I think the CG can appoint auditor

Nilesh K

39 Points Posted on 08 August 2010

Dear Amitkk - thank you for the response... Under which section does it stipulate that the appointment of the auditor must be done within 7 days of AGM failing which the CGA is empowered to appoint. Please note that this is a private limited company.

Also please share your views - whether simultaneous appointment can be made for all the pending financial years. What would be the appropriate process to be adopted by the company in carrying out the appointment and what would be the reciprocal statutory responsibilities of the auditor for the purpose of accepting such an appointment.